We all know SMEs constitute one of the pillars of the Indian economy. However, it is also a fact that financial distress rate amongst the SMEs is alarming and this is despite the Government doing its best to help SMEs in every possible manner. Such SMEs can now hope to come out of such difficult phase courtesy IBC 2016.. Being an ex-banker, I am aware about the ground level realities and will be able to pin point the reasons for distress as also the solutions needed. However—at the same time—I must caution against blind reliance on the material provided through this website because each SME will have a unique set of problems and an in depth—and separate– study is needed to diagnose the problem. Lastly this is an educational website and no income of any sort is being contemplated.

The Supreme Court on Monday constituted a committee headed by former Delhi High Court judge, S N Dhingra, to carry out auction of the unencumbered properties of real estate major Unitech Ltd to raise money for refunding homebuyers who had invested in its apartment projects

“We request Justice S N Dhingra to proceed with the auction as expeditiously as possible, as the home buyers are waiting with concern to get their money refunded,” the Bench of Chief Justice of India Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said setting up the committee.

The court added that “the auction shall be subject to confirmation by this Court”.

Justice Dhingra, said the bench, “would be at liberty to nominate a Chartered Accountant and a valuer accredited with the Delhi High Court or this Court”. He “shall formulate suitable terms and conditions for auction” of the properties “on as-is-where is basis to be notified in the newspapers”, the court ordered. The Committee, it said shall also be assisted by amicus curiae Advocate Pawanshree Agarwal and Advocate Abhinav Agrawal who is appearing for the real estate firm. “The purpose of nominating of two counsel is that the Committee can function smoothly”, it added.

The court was told at Monday’s hearing that over 600 acres of unencumbered property belonging to the real estate company in various states was available for auction.

The Bench also took note of the fact that some home buyers wanted to take possession of their flats.

Referring to its earlier order, the bench said the home buyers can be handed over the possession of their homes on “as is where is basis”.

Amicus Curiae told the bench that Rs 40 crore has been deposited with the apex court Registry by one Pioneer Urban Land and Infrastructure Limited (PULIL), which has taken up certain projects in joint venture with Unitech.

However, the bench did not agree to the opposition of PULIL that it had only 40 per cent stakes in the joint venture projects with Unitech Ltd and hence the home buyers cannot be given the entire compensation from the money deposited by it.